Nissan Begins Production of All-New 2005 Xterra

SMYRNA, Tenn.--Jan. 7, 2005--To the applause of employees who built it, the
first 2005 Nissan Xterra rolled off the Smyrna manufacturing assembly line
today, the latest in a series of three truck-based products that have been
significantly updated for the 2005 model year.

"Our company's
product revival began with our 1999 launch of this innovative SUV," said
Dan Gaudette, senior vice president of North American Manufacturing and
Quality Assurance for Nissan North America, Inc. "With this second
generation, we've added more power, room and utility, something our
consumers have said they wanted. Xterra customers -- be they on-road or
off-road enthusiasts -- will not be disappointed in the evolution of this
product."

The all-new SUV, which will be offered in both 4WD and
2WD configurations with an available enhanced off-road system, is built on
Nissan's new "F-Alpha" platform, a modified version of the platform used in
the Titan full-size and Frontier midsize trucks and the Armada full-size
and Pathfinder midsize SUVs. Larger than the original award-winning Xterra,
the 2005 Xterra comes in a fully boxed, all-steel ladder frame, with a
steel double-wishbone front suspension with stabilizer bar and rigid leaf
spring rear suspension. Its ground clearance has also been enhanced.

The new Xterra's interior features more room in front and rear
seating areas and additional head room. Similar in design to the cargo
systems on the Nissan Titan and Nissan Frontier trucks, a new adjustable
channel Utili-track System in the Xterra's cargo floor makes it easier to
secure bike racks, gear and other accessories.

The 2005 Xterra is
powered by a 4.0 liter DOHC V6 engine, rated at 265 horsepower and 284
lb-ft torque. The engine will be standard in all three models of the
vehicle -- the S, Off-road and the SE. Based on the award-winning Nissan VQ
engine series found in the Nissan 350Z, Nissan Maxima and Altima sedans,
and the Murano crossover vehicle, the Xterra's powertrain features a longer
stroke specifically tuned for SUV and truck applications and is built at
Nissan's Decherd, Tennessee, powertrain assembly plant.

"Along with
a variety of employees from throughout global Nissan, the Smyrna team has
done an outstanding job preparing for all three of our truck-based launches
over the last six months," Gaudette said, referencing the launch of the
Pathfinder mid-size SUV in August and the Frontier mid-size pickup in
October. "These employees have handled the challenge of building three key
products in a short amount of time and I'm proud of what they've
accomplished. I expect the Xterra launch will continue to go smoothly and
the product to remain a highly popular one for our customers."

Nissan has invested more than $4.2 billion in its three U.S. manufacturing
facilities. In addition to the Xterra, the Smyrna plant builds the Maxima
sports sedan, the Altima midsize sedan, the Frontier midsize pickup truck
and the Pathfinder midsize SUV. The Canton, Miss., assembly plant produces
the Nissan Quest minivan, the Altima, the Armada full-size SUV, Titan
full-size truck, and the Infiniti QX56 full-size luxury SUV. In Decherd,
Tenn., Nissan builds engines for all U.S.-produced Nissan and Infiniti
vehicles and assembles transaxles.

In North America, Nissan's
operations include automotive styling, engineering, consumer and corporate
financing, sales and marketing, distribution and manufacturing. More
information on Nissan in North America and the complete line of Nissan and
Infiniti vehicles can be found online at www.NissanUSA.com and
www.infiniti.com.

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